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Morocco’s Domestic Demand Accelerates to 6.5% in Q1 2026, Boosting GDP Growth
Domestic demand in Morocco grew by 6.5 % in the first quarter of 2026, slightly outpacing the 6.4 % growth recorded a year earlier. The stronger consumption by households and the public sector lifted their contribution to GDP growth to 6.9 points, while investment activity slowed markedly. These figures suggest a modest but positive momentum for the Moroccan economy, with household spending leading the recovery and a noticeable deceleration in capital formation.
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Key Highlights
- Domestic demand growth: +6.5 % YoY (Q1 2026 vs Q1 2025)
- GDP contribution: 6.9 points (up from 5.3 points)
- Household final consumption: +4.6 % YoY, contributing 2.6 points
- Public administration consumption: +4.9 % YoY, contributing 0.9 points
- Gross fixed capital formation: +10.8 % YoY (down from 19.6 %), contributing 3.4 points
Overview
The High Commission for Planning (HCP) reports that Morocco’s internal demand expanded by 6.5 % in the first quarter of 2026, edging out the 6.4 % growth recorded in the same period of 2025. This upward movement added 6.9 points to national economic growth, a noticeable improvement over the 5.3 points from the previous year.
Household Consumption
Final consumption by households surged to a 4.6 % annual increase, a stark jump from the modest 1.1 % rise in Q1 2025. This robust consumer spending contributed 2.6 points to the GDP, compared with only 0.7 points a year earlier.
Public Administration Consumption
Spending by public administrations also rose, with the growth rate climbing from 3.5 % in Q1 2025 to 4.9 % in Q1 2026. The sector’s contribution to growth rose to 0.9 points, up from 0.6 points previously.
Investment Slowdown
Conversely, gross fixed capital formation – which includes equipment acquisition, stock variation, and net purchase of valuables – slowed dramatically. The growth rate fell from 19.6 % a year earlier to 10.8 %, reducing its contribution to GDP growth to 3.4 points from 4.0 points.
Implications
The data points to a modest yet positive momentum in Morocco’s economy, driven primarily by stronger household consumption. However, the sharp deceleration in investment highlights a potential vulnerability that policymakers will need to monitor.